Can We Take Action if an Employee Skips Part of Their Notice Period? Seeking Advice on Settlements

Notice Period Compliance and Settlement Process

Can we log a case against an employee if, after giving resignation, they do not complete the notice period or if they provide a notice period shorter than what is mentioned in the appointment letter? What will be the process for full and final settlement?

For example, if the notice period in the appointment letter is 30 days, and the employee has given only 20 days. The terms are one month's salary or one month's notice period from either side. Please suggest in this regard.

Simplifying Full & Final Settlement for Former Employees

Why make the Full & Final Settlement process complicated for a former employee? He has already served 20 days of the notice period, leaving a balance of only 10 days. Please check how many days of leave encashment are pending in his credit and deduct those days as well. Furthermore, if there are pending days from the employee's side, inform him to submit a demand draft for Rs._____/- to compensate for the pending notice period.

You can provide detailed information such as:
- Total period served in the notice period (____ days)
- Leave encashment adjusted in the Notice Period (____ days)
- Balance payment/recovery affecting Rs.____/-

Consequently, you can send a cheque for the amount or instruct the ex-employee to pay a Demand Draft for Rs._____/-.

Upon receiving the payment, his relieving letter, Experience Certificate, and Last Pay Drawn Certificate will be issued, and his PF Claim will be processed. By writing a simple letter like this, the ex-employee will likely respond, and the matter will be settled amicably.

Regards,

I agree with Bhaskar. There is no point in creating an unnecessary hassle in this matter. Your duty should be to make sure that the leaving formalities are done properly and the handover is completed within the time period the employee serves the notice period. The remaining days can be adjusted against the leaves, and the full and final amount decided accordingly.

In this case, the employee is serving a 20-day notice period. He is entitled to receive the salary for that period. Additionally, if there are remaining leaves in his quota, he should also receive them redeemed.

Therefore, as part of the full and final settlement, you can deduct the amount for the remaining days from his last month's earnings and pay him accordingly. The employee does not owe any amount to the company as he is fulfilling the 20-day notice period.

Hope this helps.

Regards,
Nisha

I am in agreement with the above two colleagues that the matter under reference is not worth clamoring over. In the given situation, normally two alternatives exist:

a. Adjust ten days' leave, due to the employee, to cover the shortfall in the notice period; and
b. Adjust the payment due to the employee for the period short of notice.

A third situation can also be considered: writing to the person concerned to send a Demand Draft (DD) to the management for the amount short of the notice. However, the last alternative is not recommended as it is vague and dependent on the person concerned.

You may like to choose either of the two options. Please remember that we have many more important jobs to do in the industry instead of chasing the one under reference.

Regards,
S.K. Johri